Local millers cry foul over foreign takeover of reserved sector

Local grain milling companies have raised alarm over what they describe as the growing invasion of Zimbabwe's legally reserved sectors by foreign nationals, particularly Pakistani business operators.

The complaints were voiced during a recent engagement between small-scale millers and the Grain Millers Association of Zimbabwe (GMAZ) in Bulawayo. The millers allege that foreign players have entered the grain milling sector - which is reserved for indigenous Zimbabweans under the Indigenisation and Economic Empowerment Act - and are trading mealie-meal at unsustainably low and "questionable" prices.

James Kamono, who owns Marula Milling Company, expressed concern over the increasing number of foreign-owned milling businesses in violation of local laws.

"One of the challenges we are having as small millers is the invasion of this reserved sector by foreign nationals," Kamono said. "These foreign nationals, particularly the Pakistanis, are selling mealie meals at low and questionable prices. This has lowered our production and sales."

Kamono urged government authorities to enforce the laws more strictly and introduce tougher penalties for violations.

"We spoke about indigenisation and the reserved sector, but I think we need to push more on that issue because we have so many foreigners opening their milling companies and that is affecting our operations," he added.

His concerns were echoed by Mthandazo Moyo of Shakata Investments, who highlighted that limited financial capacity is already a major challenge for local millers - now made worse by foreign competition.

"As a small miller, we do not have the capital to buy large volumes of maize, and the situation is worsened by foreigners who are taking over the sectors reserved for locals," Moyo said.

Despite the challenges, millers welcomed GMAZ's initiative to facilitate the movement of maize from the Northern Region to the drought-stricken Southern Region of Zimbabwe.

GMAZ Southern Region Vice Chairperson Mthokozisi Sibanda said the move would improve access to raw materials for local millers and help reduce dependence on imports.

"We want to appreciate the Government in ensuring there is food security in the Southern Region," said Sibanda. "As we speak, most millers are buying local maize. For the past few years, we have been importing, but now we've been asked by the Government to assist local farmers by buying locally."

He said the internal movement of maize will reduce transportation times and costs, resulting in quicker turnaround and higher capacity utilization at milling plants.

"Local purchases are key," Sibanda emphasized. "Bringing maize from the north to the south may take only a day, which is a major advantage for our operations."

He also noted that local sourcing will help retain jobs and stimulate industrial growth.

"The export of labour has stopped - we're now buying locally, promoting local farmers, and improving our milling capacity. This is crucial for our national development and GDP," he said.

The developments come amid renewed calls for stricter enforcement of the country's empowerment laws to ensure Zimbabweans benefit fully from sectors designated for their participation and growth.